Local Content

To ensure delivery of the best goods, services and works for the Karachaganak operations we cooperate with a large number of contractors, vendors and counterparties both in Kazakhstan and worldwide. We acknowledge the impact of our presence in the West Kazakhstan region and contribute to local sustainability goals by developing local content and creating procurement opportunities.

KPO is one of the first companies in Kazakhstan that successfully introduced the Local Content Development Programme. KPO has an extensive supply chain with over 700 current suppliers with a pool of sub-contractors that perform a significant proportion of activities.

Considering the achievement of 70% local content in works and services, the Company has focused on localization on production of goods.

Over the past few years, KPO introduced fundamental changes in its management approach in Local Content and went through major changes in local procurement from simple products to a number of high-technology goods and equipment. As a result of local content development activities, Qazaq producers have managed to improve their production capacities, and today supply KPO with separators, reservoirs, structural steel, tubular goods, electrical equipment, heat exchangers and much more.

In 2020, KPO local content development initiatives have led to achieve the following results:

  • Local Content share in Karachaganak project reached 59.3% (US$ 586.7 mln) for 2020, as shown in the graph below.
  • 33% of total goods procured by KPO are locally produced (US$ 45.5 mln) with 16.2 % Local Content share confirmed by the SR-KZ Certificate.

Local Content Share in total KPO procurement of goods, works & services, 2014-2020